Market Roundup
•US Distillate Fuel Production 0.128M,0.217M previous
•US EIA Weekly Refinery Utilization Rates (WoW) 1.0%,1.9% previous
•US Gasoline Inventories -3.310M,-1.350M forecast,-5.662M previous
•US Cushing Crude Oil Inventories -0.018M,-0.220M previous
•US EIA Weekly Distillates Stocks -0.087M forecast,0.888M previous
•US Crude Oil Imports-0.947M, -0.241M previous
•US Gasoline Production -0.263M, 0.285M previous
•US Crude Oil Inventories -1.952M,-0.900M forecast,-1.536M previous
•US Fed Interest Rate Decision 5.50% , 5.50% forecast,5.50% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Feb Unemployment Rate 4.0% forecast,4.1% previous
•00:30 Australia Feb Employment Change 39.7K forecast,0.5K previous
•00:30 Australia Feb Participation Rate 66.8% forecast,66.8% previous
•Japan Mar Manufacturing PMI 47.5 forecast,47.2 previous
•00:30 Australia Feb Full Employment Change 11.1K previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro rose on Wednesday as dollar dipped after the Federal Reserve held interest rates steady as expected and policymakers still projected three U.S. rate cuts this year even as inflation remains elevated. The Fed's updated quarterly economic projections showed the personal consumption expenditures price index excluding food and energy rising at a 2.6% rate by year-end, compared to 2.4% in the projections the U.S. central bank issued in December. The new policy view upgraded the outlook for the U.S. economy. Policymakers now see growth at 2.1% this year compared to 1.4% projected in December, while the unemployment rate is seen ending 2024 at 4%, versus 4.1% anticipated late last year. The euro was up 0.35% to $1.0903. Immediate resistance can be seen at 1.0947 (23.6%fib), an upside break can trigger rise towards 1.0968(Higher BB).On the downside, immediate support is seen at 1.0902 (March 12th low), a break below could take the pair towards 1.0865(38.2%fib).
GBP/USD: Sterling strengthened against dollar on Wednesday as greenback dipped after Federal Reserve kept borrowing costs unchanged. The Fed's policy statement described inflation as remaining "elevated," and it raised economic projections for economic growth and lowered its projection for the unemployment rate from estimates it provided in December.Dollar losses accelerated after Fed Chair Jerome Powell said in a press conference that despite recent inflation data coming in hotter than expected, the numbers "haven't really changed the overall story, which is that of inflation moving down gradually, on a somewhat bumpy road. Immediate resistance can be seen at 1.2823(23.6%fib), an upside break can trigger rise towards 1.2854(Higher BB).On the downside, immediate support is seen at 1.2772(38.2%fib), a break below could take the pair towards 1.2728(50%fib).
USD/CAD: The Canadian dollar strengthened to a six-day high against its U.S. counterpart on Wednesday as investors cheered the Federal Reserve's move to stick with its interest rate-cutting forecast for 2024. The Fed held interest rates steady but policymakers indicated they still expect to reduce them by three 25-basis-point rate cuts by the end of 2024 despite stodgier expected progress towards the U.S. central bank's 2% inflation target. The Bank of Canada also expects to ease this year, minutes from the central bank's policy meeting from earlier this month showed. But policymakers were divided over when there would likely be enough evidence that the conditions were right for cuts.The loonie was trading 0.5% higher at 1.35 to the U.S. dollar, or 74.07 U.S. cents, after touching its strongest intraday level since last Thursday at 1.3491. Immediate resistance can be seen at 1.35425(23.6%fib), an upside break can trigger rise towards 1.3601(Higher BB).On the downside, immediate support is seen at 1.3466 (38.2% fib), a break below could take the pair towards 1.3447(Lower BB).
USD/JPY: The dollar strengthened against the yen on Wednesday after the Federal Reserve indicated that it still expects to cut U.S. interest rates three times this year despite projecting slightly slower progress on inflation.Fed Chair Jerome Powell said recent high inflation readings had not changed the underlying story of slowly easing price pressures, but added that recent data also had not bolstered the central bank's confidence the inflation battle had been won. The dollar reversed into losses after the Fed's meeting. The dollar index fell 0.433%, and a softer dollar helped the Japanese yen claw back some losses. It was down 0.30% versus the greenback at 151.29 per dollar, off a four-month low of 151.82 hit earlier on Wednesday.Strong resistance can be seen at 151.88(23.6%fib), an upside break can trigger rise towards 152.63 (Higher BB).On the downside, immediate support is seen at 150.44 (38.2%fib), a break below could take the pair towards 149.43(50%fib).
Equities Recap
European shares moved lower on Wednesday, weighed down by a sell-off in luxury stocks over sales warning from Kering.
The UK's benchmark FTSE 100 closed down by 0.02 percent, Germany's Dax ended up by 0.14 percent, and France’s CAC finished the down by 0.48 percent.
Wall Street's main stock indexes closed higher on Wednesday after the Federal Reserve eased investor jitters by keeping borrowing costs unchanged and reinforcing expectations that rates could be cut as many as three times this year.
Dow Jones closed up by 1.03 percent, S&P 500 ended up 0.89 percent, Nasdaq finished the day up by 1.25 percent.
Commodities Recap
Gold exhibited minimal response immediately following the U.S. Federal Reserve's decision on Wednesday afternoon to keep interest rates unchanged and uphold its projection of three rate cuts this year.
The most active gold futures contract had climbed by $1.30, or nearly 0.1%, to settle at $2,161 an ounce
Oil prices fell on Wednesday as the U.S. Federal Reserve held interest rate steady and demand concerns continue to weigh.
Brent crude futures for May settled down $1.43, or 1.64%, at $85.95 a barrel. U.S. West Texas Intermediate futures for April delivery , which expire on Wednesday, ended $1.79, or 2.14%, lower at $81.68.
Brent had settled at its highest since Oct. 31 in the previous session at $87.38 a barrel, while WTI hit its highest since Oct. 27 at $83.47.
